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Flint Company estimates its sales at 120,000 units in the first quarter and that sales...

Question:

Flint Company estimates its sales at 120,000 units in the first quarter and that sales willincrease by 12,000 units each quarter over the year. They have, and desire, a 25% endinginventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of thecredit customers pay within the quarter. The remainder is received in the quarter following sale.Cash collections for the third quarter are budgeted at ........

Cash Collections

Product sales are sold on a cash or credit basis. Cash sales are collected at the time of sale while credit sales are collected according to the terms of sale.

Answer and Explanation:

The answer is $3,546,000

See the following table. Note that the 25% desired ending inventory of finished goods is not a factor since all units sold...

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Cash Collection & Concentration: Definition & Components

from Finance 101: Principles of Finance

Chapter 18 / Lesson 3
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